Martin Lewis slams energy tariff ban as “broken market” plan launched

Staff
By Staff
3 Min Read

Energy regulator Ofgem has initiated a consultation on ending the ban on acquisition-only energy tariffs.

This ban currently prevents energy suppliers from offering tariffs exclusively to new customers.

The proposed change aims to enhance competition and reduce prices in the retail energy market.

Martin Lewis, Founder and Chair of MoneySavingExpert, has expressed strong support for this initiative.

Mr Lewis emphasised the urgency of stimulating competition to lower consumer prices.

Lewis highlighted that the current energy market does not encourage firms to compete for customers, resulting in minimal savings from switching tariffs.

Martin Lewis said: “The energy market is broken. We need anything possible right now to stimulate competition and bring prices down.

“In March, I was staggered when Ofgem told me ‘there is evidence that removing the acquisition-only tariff ban would benefit consumers’, but didn’t remove it ‘in case it was moving too quickly.’

“I disagreed and said we should throw the kitchen sink at getting people cheaper deals. So, this is better late than never.

“In normal times, I wouldn’t call for firms to be allowed to offer new customers cheaper prices than existing, yet these aren’t normal times.

“The current UK retail energy system was built on the premise that firms would fight each other for customers and compete on price – yet that’s hardly happening.

“Most firms are currently happy to sit on their existing customers and profit – where once you could switch and save 30%, now it’s a few per cent at most. So, in reality, the Energy Price Cap, set up as a remedial backstop rate, is now pretty much the Price.”

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